Business views

On Biodiversity and Ethical Sourcing

Towards increased transparency in companycommunications

Biodiversity is now firmly on the radar of the top beauty and food companies. Between 2009 and 2018 business awareness of, and commitment to, ethical sourcing of biodiversity has increased significantly. Company reporting on biodiversity, both as a general topic and as issue in supply chains, keeps rising year-on-year.

In addition in 2017, UEBT had also interviewed various experts in the sector to gain deeper understanding.

Biodiversity: a key asset for business

Business is increasingly realising the importance of biodiversity as a vital source of innovation and inspiration. With the mounting importance of naturals, respect for biodiversity is imperative to assure long-term access to natural ingredients. There is also a growing realisation that biodiversity contributes to ecological resilience of sourcing areas, a key concern in time of climate change, and offers access to a gene pool that assures healthy populations or resistance to new pests.

Ethical sourcing of biodiversity key for positive impact companies

A growing number of companies commits to having positive impacts on society, rather than just mitigating risks. Biodiversity is at the basis of a wide range of natural ingredients, and positive impact can be created for people and biodiversity all along the supply chain. With consumers indicating that companies have the moral obligation to generate positive impact, brands are increasingly aspiring this.

Biodiversity based innovation

Driven by growing consumer demand for naturals, trends to eliminate synthetics in product formulations, and new technologies, companies increasingly embark on biodiversity based R&D. Aquatic, soil, and plant biodiversity are sources for innovation in various sectors, providing new active ingredients, scents, nutritional qualities, or higher yielding plant varieties.

Access and benefit sharing (ABS) & biodiversity-based innovation

With the UN Nagoya Protocol, national rules are being developed on biodiversity-based R&D. These rules may impact a range of activities, including screening of plant extracts, testing natural ingredients and sourcing plant-based raw material. Biodiversity-rich countries such as Brazil, India and South Africa already have ABS rules in place, as well as the European Union, which focuses on ensuring compliance of biodiversity-based R&D in member states.

As ABS regulations are unfolding, implications are initially unclear and some companies may avoid biodiversity-based innovation, or countries with strict rules. However, as numerous countries adopt rules and importance of innovation around naturals continues to grow, experts see companies moving to understand and engage in ABS.

Ethical sourcing along the supply chains

More and more brands are committing to sustainability, to respond to consumer calls for increased transparency, and to secure their supply chains. This trend drives supply chain integration and long-term sourcing partnerships, improving sourcing practices and raw material quality. Increased attention is paid to harvesting techniques, working conditions, and mitigation of environmental impacts. Positive impact companies go even further, promoting tangible benefits for people and biodiversity along their supply chains. Their suppliers are expected to offer creative and credible solutions to achieve this.